A question about options...
I don't know much about options and they are not at all a part of my trading system, but I am of course a little curious about them and hoped somebody could shed some light.
I've been noticing that very frequently on the NEWS wires (within the stories) they mention a lot about exotic options barrier targeted and so on... Nine times out of 10, the price strikes that target regardless of any other significant price-related signs (i.e. support, resistance levels, trend-lines, etc.) So basically, you could be eyeballing the price and even if the strike price is a fair distance away from the current price and/or "not likely" to reach that price for any other given reason, the price likely always hits the target (maybe with a spike...)
I also noticed that the expiry calendar for the pairs are quite frequent vs. stocks. So,...Do any of you use FOREX option targets in your trading? Good strategies to use? Do you have a source for a calendar to see expiry times/prices? Any other good sources for FOREX-related options info?
Many thanks..
Example this morning: (GBP had a hard break-out to the strike level.)
quote:
London, May 9. Sell stops reportedly reside under the 11-week low of 1.9495 plumbed in early European trade, when a 1.9500 exotic option barrier was successfully targeted. Further sell stops are tipped below 1.9480--another option barrier level.
I don't know much about options and they are not at all a part of my trading system, but I am of course a little curious about them and hoped somebody could shed some light.
I've been noticing that very frequently on the NEWS wires (within the stories) they mention a lot about exotic options barrier targeted and so on... Nine times out of 10, the price strikes that target regardless of any other significant price-related signs (i.e. support, resistance levels, trend-lines, etc.) So basically, you could be eyeballing the price and even if the strike price is a fair distance away from the current price and/or "not likely" to reach that price for any other given reason, the price likely always hits the target (maybe with a spike...)
I also noticed that the expiry calendar for the pairs are quite frequent vs. stocks. So,...Do any of you use FOREX option targets in your trading? Good strategies to use? Do you have a source for a calendar to see expiry times/prices? Any other good sources for FOREX-related options info?
Many thanks..
Example this morning: (GBP had a hard break-out to the strike level.)
quote:
London, May 9. Sell stops reportedly reside under the 11-week low of 1.9495 plumbed in early European trade, when a 1.9500 exotic option barrier was successfully targeted. Further sell stops are tipped below 1.9480--another option barrier level.